"The Bank of England's latest inflation report represents an abdication of the responsibility given to it by the government. Inflation is expected to rise more than one per cent above target again and may remain above target for the next two years. This will mean that, by the beginning of 2015, inflation will have been above target for five years. The Bank must stop blaming one-off factors for this.

“Worryingly, the Bank of England expects inflation to be brought back to target as a result of productivity growth from 2015. Not only can this not be guaranteed, this is a return to the economic reasoning that was so disastrous in the 1970s. It is monetary policy that determines inflation in the long run and the Bank of England is in charge of monetary policy."

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